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In Houston, the property tax rate is 3%, and inflation is roughly 2%,so for property to be a net gain, it has to increase in value at over 5%, which is faster t
by akgoel 7y ago
In Houston, the property tax rate is 3%, and inflation is roughly 2%,so for property to be a net gain, it has to increase in value at over 5%, which is faster than the overall economy, and hence gets less affordable over time
- sokoloff 7y agoYou would be paying (indirectly) the property tax even to live in a rental, so I don't think that you should count that as a home ownership cost (any more than you'd count cable, gas, or electric bills as ownership costs) if you are going to live in the property.
- im3w1l 7y agoAnother solution to that equation is that houses increase in value at 2% a year (keep pace with inflation), and yield 3+x % in rent per year, where x is enough to cover administration and provide a modest return.